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Transforming account delinquency management for leading credit card issuer

ValueMomentum assists credit card issuer to automate knowledge-intensive collections decisions and automates decisions related to which collection strategy to pursue based on the account holders' delinquency status

Industry
Lending

Client
Top 5 credit card issuer in USA

Industry Needs addressed
Credit Collections

• Account delinquency is a large problem for consumer credit firms
• Customer had a large mainframe application which identified and assigned collections strategies for delinquent accounts
• The mainframe-based application required long lead times to support changes in business strategies and was costly to maintain
• Our customer desired to consolidate and automate the process of administering collections strategies by consolidating collections rules onto a best of breed Business Rules Engine

Technology Solution delivered
Business Rules Management Systems (BRMS)

• ValueMomentum initially built a prototype to demonstrate the viability and performance capabilities of the system
• ValueMomentum partnered with the Customer in reengineering the collections application and implementing existing collections management logic in Business Rules Engine. Key responsibilities included:
  • Systematically analyzing business requirements, processes
  • Mining collections business rules from various systems
  • Architecture of the rules engine, which served as a foundation for the collections system
  • Migrated and implemented the rules into the new Collections System through the Rule Authoring tool that was set up
  • Provided many utilities to accelerate rule authoring and improve efficiency of development and business teams that were tasked with authoring the rules into the Collections system. (Example - tools that could convert excel sheets into Decision Tables).
  • Tested the business rules. Leveraged DART (Data Automated Rules testing) utility to streamline unit testing of rules.
  • Provided effort estimates for various work items and coordinated the work across the team members.

Execution model
At site, T&M

Technologies used
Fair Isaac Blaze Advisor, J2EE, Ab initio, XML, Rule Services

Benefits delivered

• The re-platformed collections application housed over 15,000 business rules that guided collections processing for the Customer's different business units and could process >4M transactions a day
• Increased agility through a cycle-time reduction for changes to collections strategies, from months to weeks

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